While chilling over at Budgets are Sexy, I ran across this CNN Money tool that gives you a snapshot of your overall financial health in a nutshell. While J. scored a B+, I came in just under that with a B:
I feel great about all the debt I’ve eliminated and am pleased to have scored so high considering how bad things were 5 years ago. I am most concerned about building up emergency savings. The issues with life insurance (not even sure if it’s accurate – I don’t remember the amount I get through work) and retirement savings are on the back burner. That’s what personal finance is all about – figuring out what important to me and making my money work towards my goals.
Right now, Cute Man and I are focused on saving up to buy a house/condo and start a family. Once those things actually come into play, I’ll certainly look into the life insurance piece more carefully, but for right now, it’s not a concern. As things stand now, each of us could handle the rent/expenses on our own, if need be. As for retirement savings, I think it’s important not to leave money on the table so I’m contributing what I need to get the employer match. I had been contributing more, but I cut it back in favor of building the E-fund and saving to buy a house. We simply can’t do everything so we prioritized. I feel good that I am putting money away each check for retirement but I know that it’s not a whole lot. Thank goodness for compound interest, at least.
So how’s your financial health? Have you tried the tool and did you think it was an accurate indicator?